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Ayushman Bharat Scheme : World’s biggest health plan to be cashless

Ayushman Bharat Scheme : World’s biggest health plan to be cashless

A day after he announced the world’s biggest government-funded health cover in the annual Budget, Union Finance Minister Arun Jaitley on Friday said it will be a cashless scheme, not a reimbursement one.

Amid apprehensions about the provisional allocation of Rs 2000 for the scheme, Jaitley promised more funds as the scheme rolls out in the next financial year.

Also Read :It’s ‘Modicare’: 10 crore poor Indians to benefit from world’s largest healthcare insurance scheme

“It takes care of hospitalisation, the secondary and tertiary care. Obviously, it will involve various state hospitals and selected private hospitals. It can be on trust model, it can be on insurance model. 

It’s not on reimbursement model because too many complaints come on the reimbursement model,” Jaitley said at an event organised by ‘Open’ magazine.

Referring to certain illnesses, he said: “These are the kind of emergencies which put many of these households in a state of poverty”.

Jaitley said the model will be worked out between the government’s think tank Niti Aayog and the Health ministry.

The Ayushman Bharat scheme, also called ‘Modicare’, plans to give annual medical insurance cover to 10 crore poor and vulnerable families who make up 40 per cent of India’s population.

Calling the scheme ‘bold’ and ‘revolutionary’, Health minister JP Nadda said it covered all components of healthcare – primary, secondary and tertiary.  

“It will increase the productivity of the common man and bring about a change in the socio-economic scheme,” said Nadda.


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